Legal Studies; Tutorial 7:

MISREPRESENTATION

1. What factors must be established for an actionable misrepresentation? What is

meant when it is said that a misrepresentation makes a contract voidable, not
void?
Statement must be one of fact, not law, intention or opinion
Party who makes a false statement in the belief that it is true comes under an
obligation to disclose the truth should be subsequently discover that he was
mistaken or that there has been a change of circumstances
An untrue statement of fact made by one party to the other with the intention that
the other person shall act upon such misrepresenteation and does so act made
before or at the tune of contract-induce the contract
Opinion expert
Lord den
Skill+cone
peekvguney
Voidable by the mislead party

2. In what circumstances will the right to rescind be lost?

Rescind: Reversion or going back to the pre contractional period
Restore to original position
Circumstance: Lapse of time (Leaf vs Internal Gallies)
Affirmation of contract – want to continue eventho has misrep
3rd party rights

Negligent statement- Tort-no contract

Hedley burner hellier
 1. Special relationship
2. Relied
3. Financial damage

With o Flannigan
Dr sell practice
Vitiate-destroy or invalidate

3. In what way has the burden of proof been affected by the Misrepresentation Act
1967?

4. What is the difference between an actionable misrepresentation, and a negligent

misstatement?

5. In what circumstances will an unreported change of pre-contractual factors vitiate a

subsequent contract?

6. How are damages for the different types of misrepresentation assessed?

Fraudulent – Lorf Hechecl decy peek
Negligent misrepsentation think normal damages undercontract
Innocent misrepresentation honest but mistaken belief denvy v peek
Normal recission

7. Is it the case that all misrepresentations are written?